LINEAR PROGRAMMING

(SMQ 3043)
SEMESTER 1 2019/2020

ASSIGNMENT 1

Profit Optimization Using Simplex Methods on Home

Industry Bintang Bakery in Sukarame Bandar Lampung

NAMA PENSYARAH: Profesor Madya Dr. Raja Noor Farah Azura binti Raja
Maamor Shah

KUMPULAN KULIAH: D

NAMA NO. MATRIK KURSUS

Nur Athirah Binti Norazman D20161074155 AT 21

Nurul Aqilah Binti Mohd Ramalan D20161074178 AT 21

Nordiyana bt meor ahmad tajudin D20161074136 AT21

Norshafina binti Badri D20161074139 AT21

Nur Alia Nabilah Bt Kashfi D20161074175 AT21

 Profit Optimization Using Simplex Methods on Home

Industry Bintang Bakery in Sukarame Bandar Lampung

1. Problem Statements
The common problem faced by large, medium and small companies is how to
combine factors of production or resources that are owned jointly so as to obtain
maximum profits at a minimum cost. Problems related to the process of maximizing
profits on star Bakery home industry is the process of finding optimal solutions in
production. There is a linear relationship of the level of profit, factors of production
and products produced by the company, to solve the optimization problem is used
linear programming analysis tool (linear program) using the simplex method [5].

2. Objectives
 The purpose of this research is to optimize the benefits of the Bintang Bakery
home industry.
 To find an optimization model of profit on the Bakery star home industry.

3. Literature review
This research has been carried out by several people, namely Yulianti Siadari,
with the title of the research is Optimization of the Advantages in the Production of
Crepe Industry in Bandar Lampung PU Gang (Case Study at the Palace of Chips Mery
Mother), and An-Saryoko with the title of research Me-tode Simplex in Optimizing
Production Results. The research that will be conducted this time has three variables
by using the simplex method. In this study, the production factors used are raw
materials, production machines, and labor hours using Lindo tools.

4. Methodology
The researchers used interview and observation to obtain data from the production
process. They used simplex method in linear programming to analyse data.

1. Linear Programming
Standard linear programming problems. Maximum or minimum:

𝑍 = 𝑐1𝑥1 + 𝑐2𝑥2 + 𝑐3𝑥3 + ⋯ + 𝑐𝑛𝑥𝑛

Limiting resources (constraints):
𝑎11𝑥1 + 𝑎12𝑥2 + 𝑎13𝑥3 + ⋯ + 𝑎1𝑛𝑥𝑛 =/≤/≥ 𝑏1
𝑎21𝑥1 + 𝑎22𝑥2 + 𝑎23𝑥3 + ⋯ + 𝑎2𝑛𝑥𝑛 =/≤/≥ 𝑏2
𝑎𝑚1𝑥1 + 𝑎𝑚2𝑥2 + 𝑎𝑚3𝑥3 + ⋯ + 𝑎𝑚𝑛𝑥𝑛 =≰≱ 𝑏𝑚
𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 ≥ 0
Symbol 𝑥1 ,𝑥2 ,𝑥3 ,…,𝑥𝑛 (𝑥𝑖) shows decision variables, number of decision variables
(𝑥𝑖) therefore depending on the number of activities or activities carried out to achieve
the goal. Symbol
𝑐1, 𝑐2,𝑐3,…,𝑐𝑛 is the contribution of each decision variable to the goal, also called the
objective function coefficient on the mathematical model. Symbol 𝑎11,… 𝑎1𝑛,…
𝑎𝑚𝑛 is the use per unit of the limitation variable of resources which limits or is called
the constraint function coefficient on the mathematical model. Symbol 𝑏1,… 𝑏2,…
𝑏𝑚 shows the number of each available resource. The number of constraint functions
will depend on the limited number of resources. The last inequality (𝑥1,𝑥2,…,𝑥𝑛 ≥0)
shows non-negative limits.

2. Simplex Method
The simplex method is a solution to the problem of linear programming by finding a
feasible solution, and using an iterative procedure, developing solutions to an optimal
solution. (The simplex method starts with a feasible point and tests whether the value
of the objective function is optimal. If this is not the case, then this method continues
at a better point. It is said to be better because, at a new point, the value of the
objective function is usually close to optimal. If this new point does not provide
optimal value, we repeat the procedure. In the end, the simplex method will produce
an optimal value if it exists .

The general form of the objective function equation to maximize is:

cj = product profit contribution to-j
xj = product group to-j
The simplex table forms are as follows:
 Information:
Z = the objective function is the optimal value (maximum, minimum)
𝐶𝑛 = coefficient of profit per product package for each 𝑥𝑛
𝑥𝑛 = decision variable to-n
𝑆𝑛 = slack variable to-n
𝑎(𝑚𝑛) = resource requirements for each 𝑥𝑛
𝑏𝑚 = the number of resources available
𝑛 = the number of decision variables starts from 1, 2, ... , n
𝑚 = the number of types of resources used start from 1, 2.. m

5. The steps and results

This research was conducted at the star Bakery home industry, Sukarame, Bandar
Lampung. This business produces three types of products, namely flavored bread,
mattress bread, and fresh bread. This flavored bread has six flavors, namely chocolate
flavor, chocolate cheese flavor, pineapple flavor, blueberry flavor, cheese milk flavor,
and strawberry flavor. The price in each package of bread is Rp.
Completion of the simplex method:
Solving the above problems and to find an optimization model of profit on the Bakery
star home industry, use the following steps:
1. Determine the decision variables in solving linear program problems, namely the
types of bread produced in the Bakery star home industry:
𝑥1 = 𝐵𝑖𝑛𝑡𝑎𝑛𝑔 𝐵𝑎𝑘𝑒𝑟𝑦 𝑓𝑙𝑎𝑣𝑜𝑟 (3640 𝑝𝑎𝑐𝑘𝑠)
𝑥2 = 𝐵𝑖𝑛𝑡𝑎𝑛𝑔 𝐵𝑎𝑘𝑒𝑟𝑦 𝑚𝑎𝑡𝑡𝑟𝑒𝑠𝑠 (1300 𝑝𝑎𝑐𝑘𝑠)
𝑥3 = 𝐵𝑖𝑛𝑡𝑎𝑛𝑔 𝐵𝑎𝑘𝑒𝑟𝑦 𝑏𝑎𝑟𝑔𝑎𝑖𝑛 (520 𝑝𝑎𝑐𝑘𝑠)
 2. Determine the constraints in the problem:

𝐹𝑙𝑜𝑢𝑟 = 28𝑥1 + 100𝑥2 + 250𝑥3 ≤ 400.000

𝑆𝑢𝑔𝑎𝑟 = 7𝑥1 + 25𝑥2 + 62𝑥3 ≤ 250.000
𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑒𝑟 = 1𝑥1 + 9𝑥2 + 4𝑥3 ≤ 90000
𝑆𝑜𝑓𝑡𝑒𝑛𝑒𝑟 = 1𝑥1 + 6𝑥2 + 2𝑥3 ≤ 40000
𝑌𝑒𝑙𝑙𝑜𝑤 𝑏𝑢𝑡𝑡𝑒𝑟 = 5𝑥1 + 20𝑥2 + 50𝑥3 ≤ 90000
𝑆𝑎𝑙𝑡 = 1𝑥1 + 3𝑥2 ≤ 10000
𝑀𝑖𝑙𝑘 𝑝𝑜𝑤𝑑𝑒𝑟 = 1𝑥1 + 3𝑥2 + 2𝑥3 ≤ 60000
𝐿𝑖𝑞𝑢𝑖𝑑 𝑚𝑖𝑙𝑘 = 5𝑥1 + 20𝑥2 ≤ 60000
𝐵𝑂𝑆 𝑏𝑢𝑡𝑡𝑒𝑟 = 5𝑥1 + 20𝑥2 ≤ 90000
𝐸𝑔𝑔 = 4𝑥1 + 15𝑥2 + 25𝑥3 ≤ 70000
𝐹𝑒𝑒𝑙𝑖𝑛𝑔 = 14𝑥1 + 20𝑥2 ≤ 200000
𝑥1 ≥ 3640
𝑥2 ≥ 1300
𝑥3 ≥ 520

3. Determine the objective function of the problem.

𝑍 = 2500𝑥1 + 6000𝑥2 + 5000𝑥3

4. Change the inequality (≤) to be (=)by adding slack variables and artificial variables
for inequality(≥)to the left side of the obstacle.

28𝑥1 + 100𝑥2 + 250𝑥3 + 𝑆1 = 400000

7𝑥1 + 25𝑥2 + 62𝑥3 + 𝑆2 = 250000
1𝑥1 + 9𝑥2 + 4𝑥3 + 𝑆3 = 90000
1𝑥1 + 6𝑥2 + 2𝑥3 + 𝑆4 = 40000
5𝑥1 + 20𝑥2 + 50𝑥3 + 𝑆5 = 90000
1𝑥1 + 3𝑥2 + 𝑆6 = 10000
1𝑥1 + 3𝑥2 + 2𝑥3 + 𝑆7 = 60000
5𝑥1 + 20𝑥2 + 𝑆8 = 600000
5𝑥1 + 20𝑥2 + 𝑆9 = 90000
4𝑥1 + 15𝑥2 + 25𝑥3 + 𝑆10 = 70000
14𝑥1 + 20𝑥2 + 𝑆11 = 200000
5𝑥3 + 𝑆12 = 90000
2𝑥3 + 𝑆13 = 20000
32𝑥1 + 132𝑥2 + 336𝑥3 + 𝑆14 = 475200
65𝑥1 + 209𝑥2 + 450𝑥3 + 𝑆15 = 748800
𝑥1 − 𝑆16 + 𝑎16 = 3640
𝑥2 − 𝑆17 + 𝑎17 = 1300
𝑥3 − 𝑆18 + 𝑎18 = 520
𝑍 = 2500𝑥1 + 6000𝑥2 + 5000𝑥3 + 0𝑆1 + 0𝑆2 + 0𝑆3 + 0𝑆4 + 0𝑆5 + 0𝑆6 + 0𝑆7
+ 0𝑆8 + 0𝑆9 + 0𝑆10 + 0𝑆11 + 0𝑆12 + 0𝑆13 + 0𝑆14 + 0𝑆15
+ 0𝑆16 + 0𝑆17 + 0𝑆18 − 𝑚𝑎16 − 𝑚𝑎17 − 𝑚𝑎18
5. Creating a simplex table by entering all the coefficients of the decision variables and
the slack variables. (attachment)
6. then iterates (attachments) to find the maximum Z value. from the results of
calculations using an iteration, a new table will be obtained.

The results of the production optimization model processing show that the production
carried out by the Bakery star home industry in factual conditions are not optimal. This
can be seen from the condition of the total production that is different from the optimal
conditions.

Based on table 3 the results of processing the production optimization model on the Bakery star
home industry in factual conditions have not shown optimal results. This is shown by the results
produced in factual conditions different from the results obtained in optimal conditions. In
factual conditions, there were 3640 flavored Bakery stars, 1300 star Bakery mattresses, and 520
tasteless Bakery stars. 3740 flavored Bakery stars, 1300 Bakery stars, and 520 Bakery stars
were obtained for optimal conditions.

Profit optimization calculations using the simplex method, get optimal results if the home
industry produces 3740 packs of flavored Bakery stars, 1300 star Bakery mattresses and 520
packaged Bakery stars, Rp. 19,750,000 obtained. If the Bakery star home industry produces
each type of bread according to optimal results, the benefits that will be obtained will get
optimal results. The optimal results obtained are Rp. 19,750,000 while the optimal results
obtained from factual conditions are Rp. 19,500,000. The benefits obtained from factual
conditions to optimal conditions are increased by Rp. 250,000